UK's Nuclear power plans cemented with China's backing

Published: 21/10/15

It was confirmed at a news conference by Prime Minister David Cameron and Chinese President Xi Jinping, EDF Energy has reached an agreement with China General Nuclear Power Corporation (CGN) for a nuclear power plant at Hinkley Point, Somerset.

EDF Energy has reached an agreement with China General Nuclear Power Corporation (CGN) for a nuclear power plant at Hinkley Point, Somerset.

It was confirmed at a news conference by Prime Minister David Cameron and Chinese President Xi Jinping.

The mainly state-owned EDF said the final cost would be £18bn. State-owned CGN will pay £6bn for one third of it.

EDF said it might sell another 15% stake in the project, but would maintain a majority holding.

President Xi has been meeting Prime Minister David Cameron, on the second day of his UK state visit.

More than £30bn worth of deals between the UK and China are expected to be struck during the four-day visit.

The agreement also set up a wider UK partnership to develop new nuclear power stations at Sizewell and Bradwell.

While they have reached Strategic Investment Agreements for all three plants, only Hinkley has a target date - it is supposed to start generating in 2025.

The Bradwell project is planned to include a Chinese-designed reactor.

BBC business editor Kamal Ahmed says the final investment decision, which should largely be a formality, by EDF and CGN will now be taken in the next few weeks.

Last month, Chancellor George Osborne visited China and secured the deal under which Beijing will invest in Hinkley Point.